Purchasing power: retirement, RSA, salary… what increases are planned for 2023?

In early 2023, inflation will rise to 7%. This will hurt purchasing power. What increases will be expected to compensate for this?

Measured over one month, the consumer price index for November 2022 reached 6.2%. According to INSEE projections, published last Thursday, the rise in prices will still reach a new high early 2023. Bad news for purchasing power. That said, let's take a quick look at the increases you can already anticipate in 2023.

Good news for purchasing power

On January 1, the minimum wage increases automatically , it is like this every year. Thus, in January 2023, it will increase by 1.81%, to 1,353.07 euros of net monthly salary. In France, outside this annual cycle, the revaluation minimum wage is one of the few to be mechanical.

To support purchasing power , a new revaluation is triggered as soon as inflation exceeds 2% compared to the last one (revaluation). In 2022, there were 2 exceptional increases for a total of 6.6% increase . It took place between December 2021 and January 2023.

That said, you can already count on another exceptional increase in the spring of 2023. In its end-of-year economic report, INSEE foresees a possible new revaluation 'At least 2% during the spring'.

If for the SMIC the increase is automatic, this is not the case for wages. However, nearly 3 out of 5 French companies carry out a general increase of approximately 3% . This is a basic increase to which the individual gratuity is added.

Moreover, all the firms that have studied this subject believe that increases 2023 will concern a wider range of employees . Not as usual. We are talking about an average increase of 4%, or slightly more.

This average Concern well the salary masse according to Deloitte . This implies that some will benefit from increases that compete with or exceed inflation, which undermines the purchasing power of the French.

Purchasing power law: revaluations

Thanks to the purchasing power law, we were able to give a boost to all social benefits in the summer of 2022. This is an increase of +4% in question. As of April 1, 2023, as every year, the RSA, the activity bonus and all social benefits must increase automatically.

We will take into account the exceptional revaluation that takes place during the year. That said, one should not not anticipate an increase in inflation . As an appendix to the social security budget, Bercy is betting on a 1.7% increase in April.

However, this estimate remains to be confirmed and will only be modified marginally. Indeed, in recent months, we were able to globally verify the INSEE forecasts .

+0.8% for the basic pension and for the minimum old age

For the basic pension , The principle is the same as for social benefits, but the timetable differs. Indeed, in order to support the purchasing power of seniors, the basic retirement pension increases each year. This takes place in January. The State logically takes this year into account the anticipated increase of 4% from last summer.

Still, the Cnav should increase the basic pension by 0.8% in January. It is based for this on the mathematical calculation, based on inflation over the last 12 months stopped in October 2022. This increase will be visible on the day of payment of the basic pension in January 2023. That is, on February 9, 2023.

For the time being, Bercy and the Ministry of Labor have not yet confirmed this rate of revaluation. For supplementary pensions, the rate of increase is different. That said, the Agirc-Arrco pension increased by 5.12% in November. This implies that we will have to wait until next fall to see this pension increase again.

As for the minimum old age, it was the subject of an anticipated increase last summer. This is why the solidarity allowance for the elderly or 'minimum old age' reaches a maximum of 953.45 euros per month. It's for a single person. For a couple, the minimum old age reaches 1,480.24 euros .

If you have additional income, this allowance varies. Its revaluation follows the same rhythm as that of the basic pension. It will therefore increase most likely 0.8% in January .

Housing allowance and property tax

Last summer, the APL has been increased by 3.5% . This is the same rate used for the 'rent shield' put in place to protect tenants from excessive increases. Associations and politicians from several parties have advocated a further increase for early 2023.

However, the measure was not included in the budget. Unless there is a political decision, the next revaluation will take place at the usual annual deadline. That is to say as of October 1, 2023 . Each year, we calculate the basis for calculating your property tax according to the HICP calculated by INSEE.

The harmonized consumer price index that you will surely hear about more regularly with the return of inflation. This does not take into account the cost of housing for owners . INSEE has just unveiled the HICP for November, which is +7.1%.

Explicitly, if your city or intercommunity does not change its tax rate, your property tax will then increase by more than 7% . Several amendments aimed to limit this increase during the examination of the 2023 budget. However, the government has chosen to leave control entirely to the municipalities.

Income tax: Livret A, LEP, PEL…

To exempt you from paying more, the revaluation of the income tax scale is progressing. Take the example of a single person with income that classifies him in the upper middle class. In 2022, with 27,000 euros of annual taxable income , you tax part of your income at 30%.

Indeed, it exceeds the threshold of the '30% tranche' set at 26,070 euros this year. As planned in the 2023 budget, next year the thresholds of the scale will be subject to a revaluation of 5.4% . This will increase this threshold to 27,478 euros.

That said, if our bachelor declares the same salary next year, it will therefore not exceed the 30% mark . He will therefore pay slightly less tax. Except, of course, if this income also increases... Are you taxable little or not at all?

In any case, know that you are probably entitled to the one and only guaranteed capital investment. This is totally tax-free and whose return follows inflation. In February 2023, the population savings account will increase to 6.2% .

It is very likely that, following the latest INSEE estimates, Bercy will confirm this estimate in mid-January. Regarding Booklet A, its rate is expected to rise to 3.3% in February . That of the housing savings plan will rise to 2% from January 1, 2023.

Source : MoneyVox